For Ecuador, the result of adopting the dollar as its official currency is that
A) its government cannot capture revenue (seigniorage) by issuing currency.
B) there tends to be greater promise of lower interest rates and greater financial stability.
C) the rate of inflation in Ecuador is tied to that of the United States.
D) All of these are correct.

Question

Quizplus · Accepted Answer

Adopting the dollar as its official currency means that Ecuador cannot capture revenue by issuing currency, there is a promise of lower interest rates and greater financial stability, and the rate of inflation is tied to that of the United States.

For Ecuador, the Result of Adopting the Dollar as Its